By Glen Hallick, MarketsFarm
WINNIPEG, May 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Monday, as an analyst said the failure of the First Republic Bank in the United States was, “clouding the markets across the board.”
To stave off the worse of the failure’s repercussions, federal regulators in the U.S. allowed First Republic to be quickly sold to JPMorgan Chase & Co.
The analyst also commented that the funds were building their short positions, including those in canola.
Read Also
North American Grain and Oilseed Review: Canola falls back
Trade, dollar weigh on U.S. values By Glen Hallick, MarketsFarm Glacier FarmMedia MarketsFarm – Intercontinental Exchange canola futures closed lower…
He noted as well that good planting progress should be made this week, especially on the drier western half of the Prairies. Alberta is scheduled to issue its weekly crop report on Friday.
In addition, canola was getting pressure from declines in Chicago soyoil and in global crude oil prices. The markets for European rapeseed and Malaysian palm oil were closed for the May Day holiday.
Crush margins took back some lost ground, with the July position rising to more than C$206 per tonne above the futures.
The Canadian dollar was slightly higher on Monday, despite gains in its U.S. counterpart. The loonie bumped up to 73.80 U.S. cents, compared to Friday’s close of 73.65.
Approximately 10,400 canola contracts were traded as of 10:25 CDT.
Prices in Canadian dollars per metric tonne at 10:25 CDT:
Price Change Canola Jul 701.10 dn 2.30 Nov 678.60 dn 4.00 Jan 683.80 dn 5.50 Mar 688.50 dn 5.60
